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Question: No inflation stickiness: Suppose the classical dichotomy holds in the short run as well as in the long run. That is, suppose inflation is not sticky but rather adjusts immediately to changes in the money supply.
(a) What effect would changes in the nominal interest rate (or the money supply) have on the economy?
(b) What effect would an aggregate demand shock have on the economy?
(c) What about an inflation shock?
Describe what the benefit would be of each initiative. Explain what role would Xerox have to play in each initiative.
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Identify 2 Products whose demand is price elastic and explain why. Which of the graphs for the best demonstrates the law of demand? Which of the following graphs best demonstrates the law of supply?
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The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 – 2(Q1 + Q2) and costs are C1(Q1) = 12Q1 and C2(Q2) = 20Q2.
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How much money would you have to invest today at 8 percent APR compounded monthly to accumulate the sum of $150,000 in 35 years? (Round your answer to two decimal places)
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